Shortly after the explosions, NASA’s satellite fire monitoring system detected a fire near the airfield.

In the morning, Murat Kumpilov, head of the Republic of Adygea, confirmed the drone strike and reported the evacuation of residents from the nearby village of Rodnikovy due to the fire.

Fire and Evacuations

Authorities have stated that there were no casualties, and emergency services, including rescuers and firefighters, were dispatched to the scene to control the fire.

The military airfield “Khanskaya,” located 3 km east of the village of Khanska and 6 km from Maikop, is roughly 80 kilometers from Krasnodar.

The airfield is approximately 400 kilometers from the front lines in Ukraine, and open sources indicate it houses the 272nd aviation training base, part of the Krasnodar Higher Military Aviation School of Pilots.

Since the start of Russia’s full-scale war against Ukraine, it is believed that the base has been used to station combat aircraft that may have participated in strikes on Ukrainian territory.

Good morning. EU interior ministers will today discuss a possible delay to the continent-wide rollout of a new digital border system, on fears that it isn’t yet ready for action, as the FT revealed last month.

Today, our finance correspondent reports on a warning from the EU’s auditor that billions of euros are being misspent, and I explain why Ursula von der Leyen is in Moldova.

Dodgy expenses

Auditors have found that EU funds are increasingly being misspent, just as discussions start on an ambitious overhaul of the bloc’s next common budget, writes Paola Tamma.

Context: Each year the European Court of Auditors reports on how the EU’s more than €100bn-a-year budget is spent. The vast majority is in payments to member states, for instance to fund infrastructure, regional development projects or agricultural subsidies.

The increased misspending was largely a result of time pressure, the auditors said, as the period for countries to spend certain leftover funds from the previous budget period ended in 2023. In addition, countries have to spend hundreds of billions in post-pandemic recovery funds by 2026.

“Some of it is down purely to the capacity of the body to control expenditure in an orderly fashion, and they’re just overwhelmed,” Tony Murphy, ECA head, told the FT ahead of today’s publication of its yearly budget report.

Last year, nearly €11bn out of €191.2 in budget payouts was misspent, the auditors estimated, including because of accounting errors. That amounts to 5.6 per cent — up from 4.2 per cent in 2022 — continuing an increase over the past three years. Auditors also detected 20 cases of suspected fraud.

Cohesion funds, which are dedicated to regional development and make up a third of the EU budget, accounted for the bulk of the misspending, with errors up 45 per cent compared with last year.

Auditors also reviewed €53.5bn in post-pandemic recovery payouts, which countries receive once they implement pre-agreed reforms. But auditors found that in 16 out of 452 examined cases, payouts were granted even though the countries hadn’t met the requisite conditions.

That is problematic, especially for those countries that are net receivers of EU funds. The European Commission is planning a budget overhaul that would link all payouts to reforms and pre-agreed investments — much like under the recovery fund — something those countries are wary of.

It also complicates Brussels’ plans to ask net budget contributors, such as Germany, to inject more cash into the next EU budget, due to start in 2028.

The commission said that it “agrees that improvements are needed, and it is acting accordingly”.

Chart du jour: Dark side

An FT investigation has tracked down how Russia built its “dark fleet” of oil tankers, acquiring at least 25 vessels via London and Dubai to evade western sanctions.

Brussels bearhug

European Commission president Ursula von der Leyen will meet Moldova’s Maia Sandu today bearing gifts — and moral support.

Context: Moldova is an EU candidate country and began formal accession talks in June. The country applied for membership in response to Russia’s war against neighbouring Ukraine, a conflict that has imperilled its security and economic stability.

Von der Leyen will use the visit to lay out an EU “growth plan” for Moldova. The initiative, which has already been launched for western Balkan countries, involves increased financial assistance and trade benefits, in exchange for reforms to integrate their economies into the EU’s single market, and prepare them for eventual membership.

Moldova’s package will be “significant and substantive”, according to a person involved with the preparations.

A Moldovan official said it would “provide the economic leap Moldova urgently needs to overcome the consequences of the war next door, push forward with reforms, and improve the lives of all Moldovans”.

The EU’s economic bear hug isn’t just about economic growth, however. Brussels is also striving to keep Moldova on a pro-EU path, and not see Sandu and her pro-western government toppled by a destabilisation campaign orchestrated and funded by Moscow.

Russia is seeking to influence a double-headed ballot in 10 days time when Moldovans will be asked to choose their next president, and vote in a referendum on enshrining EU membership in its constitution.

Officials in both Brussels and Chișinău are fearful of either Sandu — who is running for a second term — being replaced by a pro-Russian rival or the referendum failing.

Brussels’ growth plan “will help Moldova become stronger, more resilient, and deeply integrated with Europe as we advance towards EU membership”, the Moldovan official added.

“It will also demonstrate that democracy, even under pressure from Russia, brings real progress and improves lives across the country.”

What to watch today

1. EU home affairs ministers meet in Luxembourg.

2. Nato secretary-general Mark Rutte meets UK Prime Minister Sir Keir Starmer in London.

3. Ukrainian President Volodymyr Zelenskyy travels to London and Paris.

Now read these

A LUCKY player who scooped a life-changing Postcode Lottery prize refused to believe she had won – until a key sign revealed it was fate.

Sanna Babar, from West Yorkshire, was stunned when she discovered the eye-watering £111,111 windfall after entering the weekly Millionaire Street prize on Monday.

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The whopping draw saw nine thrilled neighbours on Shann Crescent, Keighly, share £1million after their postcode BD21 2TN hit the jackpot.

Mum-of-two Sanna told the Postcode Lottery she couldn’t believe her win.

“Wowee! That’s not real. Oh my God, is this real?,” she said.

But she later said it was “meant to be” as her birthday is coming up.

She added: “I’m going out-out! I was going to go to Bradford, but I think I can go a bit further than that now.”

Her and overjoyed husband Tahir Mehmood are also planning on whisking their family away on a holiday to Disneyland.

Sanna said: “We were thinking of going to Disneyland Paris in August next year, but it could be Florida now!

“I was trying to save up money, but I don’t need to do that now and I could bring my mum and dad too.

“It was a sort of fantasy before, but I’m going to do it.”

The mum-of-two said how she can’t wait to ring my mum” and spread the incredible news.

Meanwhile, another winner on the street nearly missed out on collecting his £111,000 prize.

Michael Whitaker, from Keighley, had to beg his boss for the day off – and colleagues weren’t impressed.

The self-confessed adrenaline junkie rang up his boss to ask for the day off so he could be given the huge cheque.

He said: “I rang my boss and told her Postcode Lottery are here. But I had a design and compliance finance meeting at 11am and I had all the figures.

“Luckily, my boss was ecstatic for me and said she wouldn’t tell anyone in the meeting as to why I couldn’t make it.”

Michael hopes to use his jackpot towards a “once-in-a-lifetime” tour around the Norweigan Fjords.

“When I saw the cheque, I thought £11,000 and then… I processed it and there was six digits! It’s incredible,” he said.

He also dreams of taking his new motorbike, a Triumph Tiger 900, on a road trip.

“I’ve got to an age where I want to see more, and I recently bought the motorbike to go adventure riding.” he said.

He added: “You have dreams but they’re not dreams anymore now. This brings them into reality.”

The clerk landed the massive cash prize along with eight of his neighbours in Shann Crescent, Keighly, after their postcode BD21 2TN landed the weekly Millionaire Street prize on Monday.

Every cheque was worth £111,111.

How to play the People’s Postcode Lottery?

For just £12 a month, players can sign up through the official website to have a chance of winning millions of pounds.

Once signed up, players are automatically entered into every draw and prizes are announced every day of each month.

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Tickets play for the Daily Prize, worth £1000 and revealed every single day.

Tickets could also win a jackpot of £30,000 for Saturday and Sunday’s Street Prize draws.

People’s Postcode Lottery also offers a £3million Postcode Millions draw each month – where your ticket plays for a share of the cash prize fund.

Winners are notified by email, text, post, or phone call, depending on the prize they win.

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Jackpot winners are visited by the lottery team in person.

It comes as a lucky player doubled their £200,000 Postcode Lottery win by using a clever trick – make sure you don’t miss out.

Jo Deighton from Shoreham, West Sussex, was gobsmacked when she scooped nearly an eye-watering quarter of a million pounds.

Elsewhere, one punter who bagged a £410,000 jackpot told how no one believed her – not even her husband.

Leyla Eaton’s jaw dropped after discovering she’d scooped the life-changing prize.

The mum-of-two entered when she was struck by a “strong feeling” a huge windfall was coming her way.

Meanwhile, one winning couple who scooped £142,000 in the raffle revealed their plan – but it may surprise you.

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House prices across the country are rising in England and Wales overall for the first time in two years, according to a survey.

Property professionals reported prices increasing in September, the first positive reading since October 2022. Demand, sales and new listings all grew in September, the Royal Institution of Chartered Surveyors (RICS) said.

The survey reported demand from buyers rose in September and sales increased, with many expecting further rises in the next three months and 45 per cent predicting an increase over the next 12 months. Just over a fifth (22 per cent) of professionals reported a rise in new listings.

The positive outlook for homebuyers was contrasted by a bleak outlook for renters with demand continuing to grow and outstrip supply. September saw 22 per cent of respondents showing growing demand, but a further drop in properties listed for rent, with a 29 per cent retreat. 

RICS says this trend is further influenced by some landlords listing their properties for sale before potential Capital Gains Tax rises. Unfortunately for renters, the continuing squeeze on supply will likely mean further rent rises and difficulties finding property.

Tarrant Parsons, of RICS, said: “The latest survey results convey a brighter picture for housing market activity, with the recent easing in mortgage interest rates continuing to support a recovery in buyer demand.

“Critical for the outlook, a further unwinding in monetary policy is anticipated, which should create a more favourable backdrop for the market.”

Growing demand for rental properties and limited supply of homes to rent is likely to put still more pressure on tenants.

Tina Paillet, President of RICS, said: “The survey results continue to highlight the pressures on renters, with demand consistently outstripping supply.

“While the Renters’ Rights Bill aims to improve standards and offer better protections for tenants, we must ensure that these reforms do not discourage responsible landlords from remaining in the market.

“Most importantly, the planned changes in the private rental sector fall short of tackling the core issue: increasing supply and making housing more affordable for tenants.”

Private rents rose 8.4 per cent in the year to August, with tenants typically paying £1,286 a
month, according to the Office for National Statistics. Rents in London rose by 9.6 per cent.

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Chinese stocks rose on Thursday in volatile trading ahead of a weekend press briefing from the country’s finance minister, as the central bank launched a facility to make it easier to buy shares.

The benchmark CSI 300 index rose almost 3 per cent on Thursday after closing down 7 per cent on Wednesday in its first loss in 11 consecutive sessions. Hong Kong’s Hang Seng index was up 4.2 per cent after posting its worst daily loss since 2008 on Tuesday and falling further on Wednesday.

The CSI 300 has surged by more than 30 per cent since late September after the Chinese government unveiled a stimulus package to revive economic confidence. The rally started to fade this week as investors began to question the government’s plan to boost the economy and its capital markets.

“Buy everything China-related was what we observed over the past two weeks,” said Richard Tang, China strategist and head of research Hong Kong at Julius Baer.

After a few days of heavy profit-taking, Tsang said the offshore market was moving on to a second phase of the rally, “which features slower gains, higher volatility but with the basics — earnings and valuations — back in focus.”

Thursday’s rebound came a day after Beijing announced a Saturday press briefing with finance minister Lan Fo’an, fuelling expectations that the government would announce more stimulus measures.

“The market is certainly looking for hints of more policy support coming”, said Jason Lui, head of Asia-Pacific equities and derivatives strategy at BNP Paribas.

China’s central bank moved forward on Thursday with a scheme to enable domestic financial companies to buy more stocks, a tool designed to stabilise the market and shore up liquidity.

The facility allows non-bank financial companies to borrow from the People’s Bank of China to buy equities, with bonds, stocks or exchange traded funds serving as collateral.

The bank said it was accepting applications from eligible securities groups, funds and insurance companies to pledge ETFs, bonds or constituent shares of the CSI 300 index for more liquid assets such as sovereign bonds and central bank notes.

The funds had to be invested in th stock market, the PBoC has said.

The size of the Rmb500bn ($70bn) tool “can by expanded depending on market conditions”, said the bank. The mechanism is designed to “enhance the inherent stability” and “promote healthy development” of the capital markets, it said.

Experts said the tool was similar to the US Federal Reserve’s Term Securities Lending Facility, which allowed dealers to borrow liquid assets such as Treasuries for financing by pledging illiquid collateral such as corporate bonds.

It was created during the 2008 financial crisis and revived in 2020 during the pandemic.